RoK's central bank voices worry about global economic slowdown

Monday, 2019-03-25 12:09:04
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Exports are waiting to be shipped out of the port at Busan. (Photo: The Hankyoreh)
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Republic of Korea (RoK)'s central bank on March 25 voiced worry about a global economic slowdown that would hit the country's export-driven economy.

The Bank of Korea (BoK) made the prediction in its work report to the parliamentary committee for financial affairs, saying the global economic growth slowdown, which was already seen, would continue going forward.

Amidst high external uncertainties, RoK's growth momentum worsened a little on slowing export which accounts for about half of the economy.

The country's export continued to fall for three months through February. During the March 1-20 period, the export declined 4.9 percent compared with the same period of last year.

BoK Governor Lee Ju-yeol told lawmakers that the spread of protectionist moves weakened growth momentum in advanced economies, saying RoK's growth momentum modestly weakened on slowing export.

Lee emphasized that the government was required to play an active role to stimulate the economy by earmarking a supplementary budget worth about KRW10 trillion (US$8.8 billion).

The BoK set its growth outlook for the economy at 2.5 percent in the first half and 2.8 percent in the second half.

The bank forecast that the economy would meet its growth potential this year amid rising private consumption and improved export and facility investment down the road.